The US economy grew at a slower annual rate in the second quarter than
previously estimated, the Commerce Department said on Friday.

The estimated rise in gross domestic product, the value of goods and services produced, for the period between April and June was revised down from 2.4pc to just 1.6pc, as companies reined in inventories and the trade deficit widened.

The revision – despite beating economists' estimates of a 1.4pc rise – would appear to provide further evidence that the recovery is losing steam.

The US economy enjoyed a 3.7pc expansion in the first quarter.

The cut in growth stemmed from mainly from a "sharp acceleration in imports and sharp deceleration in private inventory investment," the department said.

Business spending on equipment and software was trimmed to 17.6pc from an initial estimate of 21.9pc in the second quarter. First-quarter spending was revised down to a 7.8pc rise from 20.4pc.